Tax behavior by loaded rate type

What do these tax improvements consist of?

Until now, the tax configuration was developed under the premise that the price loaded in the engine includes taxes. This way, at checkout, the reservation amount corresponding to the tax and the base amount without taxes are informed. During the reservation process, prices are shown with or without taxes depending on the engine's query country.

From now on, with this improvement development, we aim to take into account a series of considerations that will allow adapting the tax configuration according to a series of requirements:

a. If prices are loaded without taxes included in the engine (Net rate – taxes excluded).

b. In the case of excluded taxes (Miami and LATAM) = depending on the tax configuration, the guest's query IP will be ignored. Furthermore, during the reservation, prices without taxes will be shown as summed, but it will be indicated that they are not included and the amount of each one.

c. At checkout, the breakdown of taxes and fees to be applied is shown, and according to the established configuration, the total amount to pay with or without taxes included is displayed.

Where can we configure taxes?

There are two new sections related to tax configuration:

a) In Configuration > Behavior > Other parameters = we will find the option “Loaded rate type” with a dropdown and two options:

a. Gross Rate - Taxes Included = default option.

b. Net Rate - Taxes Excluded

IMPORTANT: depending on the configuration loaded in that section, different taxes will be displayed on the front end. 

In other words:

> If we have configured “Gross Rate - Taxes Included” ONLY the included tax type will be applied on the front end. That is, if we have either the informational tax or the tax included at checkout active, they will not be applied in any case.

> If we have configured “Net Rate - Taxes Excluded” ONLY the excluded taxes will be applied on the front end (either separately or if we have both types activated, both), even if we have the included tax activated.

In addition to the configuration in the Behavior section, the following must be configured:

In Settings > Taxes = there we create a new tax or edit an existing tax and see that a new section appears named “Tax preferences”. A dropdown with three different options opens:

i) Taxes included in the rate - shown itemized at checkout = this option would be the one that has been working until now.

a. In this case, the rate loaded in BO must be: "Gross Rate - Taxes Included".

b. The IP from which the query is made is considered (as before).

ii) Taxes not included in the rate - only shown for informational purposes.

a. In this case, the rate loaded in BO is "Net Rate - Taxes Excluded".

b. It is only shown for informational purposes, so it is not added.

c. The IP from which the query is made is irrelevant.

iii) Taxes not included in the rate - are added at checkout to the total reservation amount.

a. In this case, the rate loaded in BO is "Net Rate - Taxes Excluded".

b. It will be added at the checkout stage, not before.

c. The IP from which the query is made is irrelevant.

Considerations to keep in mind:

Only excluded taxes can coexist (i.e., informational tax with tax included at checkout), never with included taxes.

Difference between the calculation of Included Taxes and Excluded Taxes:

•  Addition of a tax (excluded taxes): starts from a base price and you add the tax to obtain the total price.
• Subtraction of a tax (included taxes): starts from a total price (which already includes taxes) and you subtract the tax to obtain the base rate.

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